When Treasurer Jim Chalmers releases the Federal budget tomorrow night, ASX mining shares focused on critical minerals will be flagged to get a fresh boost.

That would come atop the $566 million the government already tipped into the strategic and critical minerals sector to encourage exploration and spur domestic production.

The government's Future Made in Australia program, intended to increase sustainable manufacturing, partly relies on reliable and affordable supplies of critical minerals.

And ASX mining shares are well-positioned, with the Department of Industry, Science and Resources noting that, "Australia is home to some of the largest recoverable critical minerals deposits on earth."

These include high-quality cobalt, lithium, manganese, rare earth elements, tungsten and vanadium.

Western nations, led by the United States and European Union, are pressing for secure supply chains of critical minerals outside of China. China has long dominated the mining and production of these technology critical metals, vital in EVs, solar panels, batteries, and a wide variety of military applications.

Chalmers flags support for ASX mining shares

According to Bloomberg, Chalmers indicated over the weekend that ASX mining shares in the critical mineral space will see more support from the federal government.

He labelled the sector a "golden opportunity".

Chalmers said, "The critical minerals space is one of the reasons why there is so much attention from global and domestic investors, but we need to make sure we can attract and deploy that."

He added:

We've got some huge advantages. We've been dealt some incredible cards: our resources base, our industrial base, energy, our human capital base, our attractiveness as an investment destination.

Chalmers said the policy would include "tax incentives, targeted grants, making sure that we've got the architecture to attract and absorb and deploy all of this private investment".

The Department of Industry, Science and Resources concurs.

It states, "We are growing our critical minerals sector to make Australia a world-leading producer of raw and processed critical minerals."

The government notes that Australia's critical and strategic minerals "are important for Australia's modern technologies, economies and national security".

Their critical values include:

• Supporting Australia's transition to net zero emissions
• Advanced manufacturing
• Defence technologies and capabilities
• Broader strategic applications

Which miners stand to benefit?

The list of ASX mining shares that could stand to benefit from further government support measures is lengthy.

I recommend investors interested in tapping into this "golden opportunity" dig in for some deep research time. Or reach out for some expert advice.

To get you started, in the lithium space, there are a number of S&P/ASX 200 Index (ASX: XJO) listed miners that remain well down from their highs amid languishing global lithium prices.

These include Pilbara Minerals Ltd (ASX: PLS), Core Lithium Ltd (ASX: CXO), IGO Ltd (ASX: IGO) and Liontown Resources Ltd (ASX: LTR).

If you'd prefer to target ASX mining shares with a focus on critical mineral cobalt, you can have a look into beaten down Cobalt Blue Holdings Ltd (ASX: COB), or resurgent Ardea Resources Ltd (ASX: ARL).

The post Why these ASX mining shares have 'got some huge advantages': Chalmers appeared first on The Motley Fool Australia.

At the time of writing, lithium carbonate futures are priced at A$115,105.09 per tonne, their highest mark on record.

This continues an extensive period of upside for the key battery ingredient whereby prices have curled up from previous lows (if you'd even call it that) in May and surpassed previous highs in late September.

Meanwhile, nickel and cobalt – two other key battery metals – have consolidated heavily over the past six to nine months and now trade just above yearly lows.

All three are seen on the chart below from September 2021 to date.

What's next for ASX shares in this segment?

Along with the upswing in long-term lithium pricing have come numerous new entrants in the lithium sphere.

Various companies now have exposure to lithium exploration and a handful to the processing and production of battery-grade product.

Several more are on the quest to do so. The point is, there are numerous ASX shares in the battery metals space that sit at selective points along the chain.

First are the miners, then those involved in the distribution and refining processes, and then the more tech-based players that are innovating in the space, to name a few.

Key lithium players Pilbara Minerals Ltd (ASX: PLS), Lake Resources NL (ASX: LKE) and Core Lithium Ltd (ASX: CXO) have been star performers on the ASX this year.

There are also those at the larger end of town, including IGO Ltd (ASX: IGO) and the large players involved in nickel and cobalt extraction, like Cobalt Blue Holdings Ltd (ASX: COB).

What do the brokers say?

Understanding the returns of this broad range of ASX shares gives unique insights into the performance of the industry.

How about looking ahead, though? According to Refinitiv Eikon data, sentiment across the sector looks to be bullish, with many of the names above tipped to continue upwards.

For the most part, the ASX shares above are each rated a buy, suggesting that analysts are still constructive on the battery metals segment – within this basket, at least.

The share prices of the above group are tipped to grow at around 44% on average over the next 12 months. However, that's a long time in the current economic climate.

Of particular note is Lake Resources, with tremendous upside yet to be priced in, brokers say.

In the meantime, time will tell on the next moves for ASX battery metals shares. Key to the debate is the price of lithium, which is showing no signs of slowing just yet.

The post What's the outlook for ASX battery metals shares in Q2? appeared first on The Motley Fool Australia.

The release said the grants would help the government reach its net zero ambitions by 2050. They would also "bolster development across Northern Australia, generate new jobs and drive regional economic growth".

Minister for Resources and Minister for North Australia Madeline King, made the following comments:

Australia has the potential to become a major global supplier of critical minerals and rare earths which will be essential to help Australia and the world transition to low-emissions technology and achieve net zero emissions by 2050.

The grants will accelerate early and mid-stage projects, driving new investment in our processing and manufacturing capabilities as we develop our critical minerals sector.

King said Australia's vast reserves of critical minerals were "crucial" to the production of batteries and electric vehicles, as well medical equipment, defence, aerospace, automotive and agritech industries. She added:

These junior projects, should they be successful in scaling up to full production, will help diversify global critical minerals supply chains.

Which companies will receive grants?

A total of six companies will receive part of the $50 million in funding.

The companies include:

• Alpha HPA Ltd (ASX: A4N): $15.5 million for its "ultra-pure" aluminium chemical plant in Gladstone, Queensland
• Cobalt Blue Holdings Ltd (ASX: COB): $15 million for its Broken Hill Cobalt project in New South Wales.
• EQ Resources Ltd (ASX: EQR): $6 million for tungsten production and to restart production at its Mount Carbine site in Queensland
• Global Advanced Metals Pty Ltd: $4 million for its recovery plant in Western Australia
• Lava Blue: $5.24 million for developing modular re-processing technology
• Mineral Commodities Limited (ASX: MRC) $3.94 million to develop its integrated ore-to-battery anodes business

What will the grants produce?

Materials investors may well be hoping the grants will bring new life to the materials sector amid China's fears of a slowdown in economic activity.

While ASX lithium shares are doing what they can to keep S&P/ASX 200 Materials Index (ASX: XMJ) above water, which is down 9.51% year to date, some other materials are falling far behind.

Iron ore has been hit especially hard due to China's real estate crisis, and precious metals gold and silver are suffering from a stronger US dollar.

On the positive front, ASX graphite shares are emerging as an alternative to lithium, and copper's outlook was recently upgraded for the long-term.

The post These ASX critical minerals companies just received millions in government grants appeared first on The Motley Fool Australia.

But most of the ASX shares exploring for and producing cobalt are on the microcap and small-cap end of the spectrum.

We look at three of the larger companies below.

But first…

What is cobalt?

A hard, shiny, greyish metal, cobalt is a highly conductive metal. It has numerous uses, including adding colour to glass and ceramics.

But we suspect its cobalt's use in aircraft engine parts and its prevalence in lithium-ion batteries, computers and mobile phones that has seen the Australian government list the metal as a critical mineral.

The government reports that Australia has high geological potential for cobalt, with a 2020 economic demonstrated resource of 1.5 million tonnes. In 2020, Australian miners produced 5,600 tonnes of cobalt, out of a total global production of 135,000 tonnes.

Only Russia and the Democratic Republic of Congo, which mines some 70% of total global cobalt, produced more.

With that said, which ASX shares are digging for cobalt?

Three ASX shares cashing in on cobalt

First up we have Jervois Global Ltd (ASX: JRV).

With a market cap of $1.2 billion, it's the biggest of the ASX shares with a strong focus on cobalt.

The company is on track to start production at its Idaho Cobalt Operations, the only cobalt mine in the United States. It's also a specialty cobalt chemicals producer at Jervois Finland.

And the Jervois share price has been riding high amid booming demand for battery metals, with shares up 29% year-to-date.

Next up we have Ardea Resources Ltd (ASX: ARL), with a market cap of $206 million.

Ardea Resources' Kalgoorlie Nickel Project, located in Western Australia, is the largest nickel-cobalt resource in the developed world. It's been awarded 'major project status' by the Australian government.

The company is another beneficiary of the booming demand for battery metals, helping send its share up a whopping 171% so far in 2022.

This brings us to our third ASX share focused on cobalt, the aptly named Cobalt Blue Holdings Ltd (ASX: COB).

Cobalt Blue has a market cap of $253 million.

The ASX share reports that it's poised to become one of the world's largest cobalt producers on the back of its Broken Hill Cobalt Deposit, in New South Wales. According to the company website, "If Broken Hill were a country, it would rank number 5 for cobalt production".

The Cobalt Blue share price is another stellar performer this year, up 62% since the opening bell on 4 January.

You can find also find out which ASX shares are cashing in on lithium and vanadium in more of our 'Mineral Monday' series.

The post Mineral Monday: What you need to know about cobalt and which ASX shares are cashing in on it appeared first on The Motley Fool Australia.

Despite the gain, Cobalt Blue shares have crept almost 2% into the red this past month of trade, and have slipped from a former high of $1.03 cents in April.

In broader ASX market moves, the S&P/ASX 200 Materials Index (ASX: XMJ) has spiked 160 basis points today while the S&P/ASX 300 Metals & Mining Index (ASX: XMM) is up 177 basis points.

Is the party nearly over?

That's a big call, particularly as the company has clipped a 64% gain this year to date while a plethora of ASX stocks has taken an absolute beating in the same time.

Not only that, but the price of cobalt remains buoyant and is still hovering around multi-year highs, despite cooling off in recent weeks.

Cobalt currently trades at US$75,000 per tonne, down from US$82,000/tonne earlier this month.

Demand has remained high for the metal that's integral to the development of batteries for electric vehicles.

As noted in Trading Economics, cobalt futures were "hovering above the US$80,000 per tonne level in May, their highest since June 2018 and up 16% this year and around amid continued strong demand from the electric vehicle sector".

Research from the website also suggests that cobalt was "expected to trade at US$76,117.50 per tonne by the end of this quarter", according to Trading Economics global macro models and analyst expectations.

Despite a cooling off in the Cobalt Blue share price, it doesn't appear as if the party's ending for the specialist miner, as there just isn't the evidence to support the fact right now.

If it were, then we'd have to question the status of the benchmark S&P/ASX 200 Index (ASX: XJO). It has barely managed to prevent a 350 basis point slide so far in 2022, even with a small relief rally from May.

A bit more on Cobalt Blue shares

Cobalt Blue shares have surged more than 136% into the green these past 12 months. They reached a 52-week closing high of $1.03 per share on 4 April.

They've since levelled off but are still up 64% this year to date.

The company's share price movement over the past 12 months is plotted on the chart below.

The post Is the party drawing to a close for the Cobalt Blue shares? appeared first on The Motley Fool Australia.

There's been no news from the cobalt developer today. However, there was plenty going on with the stock last week.

At the time of writing, the Cobalt Blue share price is trading at 81 cents, 1.25% higher than its previous close.

Though, earlier today, the stock was trading at 84.5 cents, representing a 5.6% gain.

In comparison, the All Ordinaries Index (ASX: XAO) is currently up 0.21%.

Let's take a look at what's been happening with the cobalt stock lately.

What's going on with Cobalt Blue's stock?

The Cobalt Blue share price has had a wild ride over the last seven days. It's possible today's unexplained movement could be an extension of such volatility.

 The stock launched 13% higher on both Tuesday and Wednesday last week for no obvious reason.

However, the gains came after an episode of ABC's Four Corners featuring the company was broadcast on Monday night. The episode explored Australia's critical metals mining boom.

Speaking on the program, Cobalt Blue CEO Joe Kaderavek discussed federal and state government support for the company's Broken Hill Cobalt Project, demand for its products, and its potential position in the battery-powered future.

But investor elation for the stock soon turned sour. The Cobalt Blue share price tumbled 11% on Thursday following the release of an update on its demonstration plant.

That's despite the company announcing the plant's construction was progressing well and it expected mining and concentration operations to begin soon. Additionally, demand for larger-scale samples of the project's product had been better than expected.

The bigger picture

It's also worth noting the company's major commodity's value hasn't exhibited any major movements lately.

Cobalt futures surged approximately 15% on the London Metal Exchange over the course of February and March.

However, they've been mostly stable since. Cobalt futures have traded at around US$82,000 a tonne for the last 30 days.

Cobalt Blue share price snapshot

Despite its recent volatility, the Cobalt Blue share price has been performing well lately.

It has gained 65% since the start of 2022. It's also 150% higher than it was this time last year.

The post Why did the Cobalt Blue share price leap 5% this morning? appeared first on The Motley Fool Australia.

According to Geoscience Australia, critical minerals are crucial elements for modern technologies, economies and national security.

There are several ASX-listed companies involved in the exploration, mining or production of three critical minerals: vanadium, tungsten, and cobalt.

Let's take a look at what these minerals are used for and which ASX shares are involved.

Vanadium

Vanadium is a silver-grey element used in steel alloys, nuclear reactors and space vehicles. Further, it is seen as a metal that could be used in the cathodes of batteries in electric vehicles (EV).

One vanadium share on the ASX is Australian Vanadium Ltd (ASX: AVL). The AVL share price has surged 181% over the past 12 months, and it's soaring 103% year to date. The company is exploring the Australian Vanadium Project in Western Australia.

Another vanadium explorer is Neometals Ltd (ASX: NMT), an ASX share working on vanadium recovery in Scandinavian countries. The Neometals share price has surged 154% in the past year but is down 10% since the start of 2022.

Tungsten

The critical mineral tungsten is another rare metal that can be used in the production of lithium-ion batteries. Group 6 Metals Ltd (ASX: G6M) is redeveloping a mine to explore tungsten in King Island, Tasmania. The company's share price has surged 40% year to date, although it has fallen 12% over the past 12 months.

ABC TV Four Corners viewers who tuned in to the documentary program this week would have seen Group 6 featured on the show. Chairman Johann Jacobs revealed the company was attracting interest from United States officials. He said he had held three meetings with the US embassy in 12 months, adding:

At this stage, they don't have any financial interest, but they certainly are very keen to see us progress and develop the mine because it's another supply chain… from a friendly nation.

Cobalt

Cobalt Blue Holdings Ltd (ASX: COB) is one ASX share exploring cobalt. The company has seen its shares surge 171% over the past 12 months and 86% year to date. In today's trade, the company's share price jumped nearly 14%.

In April, the company received a $15 million Federal Government grant for the Broken Hill Cobalt Project.

Cobalt is used in alloys, magnets and as a catalyst for the petroleum and chemical industries. The metal is also used in lithium-ion batteries in electric vehicles. Cobalt helps stop cathodes in the batteries from overheating.

Our final ASX share is cobalt explorer Jervois Global Ltd (ASX: JRV), which is exploring the critical mineral in Idaho, United States. Jervois shares have surged 87% in the past year and 27% year to date.

The post 3 critical minerals you might not have heard of (and the ASX shares that have surged because of them) appeared first on The Motley Fool Australia.

After a strong start to 2022 – shares are up 60% this year to date – the Cobalt Blue share price swept 10% into the red during April.

In the first part of this week, the shares fell another 12% between Friday's close and Wednesday's close. However, they have rebounded today and are currently up 6.67% at 80 cents.

What's been happening at Cobalt Blue?

April was a fairly quiet month for the miner. Early on, investors bid up its share price amid an update to its Broken Hill Cobalt Project (BHCP), released the month earlier.

By that time, Cobalt Blue had surged 79% in the month to April 5, propelled by a substantial lunge in the price of cobalt.

These pricing strengths have extended into today's market, holding the line at over $80,000 per tonne.

"Cobalt futures were hovering above the $80,000 per tonne level in May, their highest since June 2018 and up 16% this year and around amid continued strong demand from the electric vehicle sector," Trading Economics reports.

On the supply side, cobalt production has been pushed to its limits as any nation producing electronics is a cobalt buyer. On top of that, mounting sanctions on Russia, which account for roughly 4% of the world's cobalt production, for invading Ukraine intensified concerns over the commodity's supply.

Aside from that, the company was awarded a $15 million critical minerals accelerator initiative grant in late April, after a relatively quiet month.

"The Broken Hill Cobalt Project has received a significant boost by being awarded $15 million via the Australian Government's Critical Minerals Accelerator Initiative," chairman Rob Baincardi said.

"We applaud the Australian Government's support in assisting mid-stage critical minerals projects overcome the substantial technical, regulatory and financial barriers for the establishment of greenfield projects such as the BHCP."

That announcement came a day after the company's quarterly activities and cash flow report.

Cobalt Blue share price snapshot

The Cobalt Blue share price has soared 128% higher in the last 12 months of trade, although has struggled in more recent times.

Over the past month, shares have slipped 20%, coming off a three-month high of $1.03 on 4 April.

The post Why did the Cobalt Blue share price come off the boil in April? appeared first on The Motley Fool Australia.

Whilst there's been nothing sensitive out of the company's camp today, Cobalt Blue shares have thrust 97% higher in 2022 and are up 79% in the last month alone.

What's up with the Cobalt Blue share price?

Cobalt Blue shares popped last month after the company released an operations update that detailed its progress at its mining assets.

It mentioned starting works at the Broken Hill Cobalt Project (BHCP) and Pyrite Hill after completing first blasts there.

As reported by The Motley Fool's Aaron Teboneras at the time, "the underground development will mine between 3,500 to 4,000 tonnes of ore to support 20 weeks of continuous operation of the Demonstration Plant."

The company's share price initially took a hit in the days following the announcement, sliding from a high of 87 cents and cooling off to 77 cents.

A sharp spike in the price of cobalt in early March appears to have also inflected positively on the company's share price. The industrial metal lunged from US$74,000 per tonne to hit US$82,00 a tonne in just two days on 2–4 March, where it has stayed since.

Analysts at Canaccord Genuity are constructive on the stock and rate it as a speculative buy in a note from February.

The firm values Cobalt Blue at 65 cents per share, suggesting it might have to make some revisions, or that Cobalt Blue is overvalued relative to Canaccord's valuation.

Cobalt Blue share price snapshot

In the last 12 months, the Cobalt Blue share price has soared more than 156% and has outpaced all major benchmarks in that time.

During the past month, it is up 79% after a further 26% gain in the previous week of trade. Today's selling pressure is at the same volume as the company's 4-week trading average.

The post Why has the Cobalt Blue (ASX:COB) share price surged 79% in a month? appeared first on The Motley Fool Australia.

In a joint statement, Mr Tehan and Secretary Raimondo said the following:

[We] highlighted the commercial potential for both Australian and U.S. industries and underscored the need to strengthen capabilities across all segments of the supply chain, including extraction and downstream processing. Australia and the United States will look at how their respective financing mechanisms could be better coordinated and leveraged to support private investment in supply chains.

So this indicates that the US and Australian governments are intending to work together to expand Australian production and processing of 'critical minerals and rare earths'.

Critical minerals refer to the US Government's list of minerals that have been identified to "play a significant role in our national security, economy, renewable energy development and infrastructure". The list now totals 50 different elements and minerals. These include cobalt, graphite, magnesium, nickel, lithium, neodymium, vanadium and zinc. 

Which ASX mining shares could benefit from focus on critical minerals?

So the government of both the US and Australia are now focusing on developing domestic mining and processing facilities for as many of these minerals as possible. That's partly because many global supply chains presently run through China. This situation is increasingly being viewed as a strategic problem. This could have huge consequences for Australian mining shares.

Lithium shares are an obvious beneficiary. The ASX is home to many of these. The most prominent of which is Pilbara Minerals Ltd (ASX: PLS). But we also have Mineral Resources Limited (ASX: MIN) and AVZ Minerals Ltd (ASX: AVZ). 

The ASX is also home to some cobalt miners. Cobalt Blue Holdings Ltd (ASX: COB) has been in the news recently after it was granted 'major project status' by the government earlier this month. 

Earlier today, we looked at some ASX vanadium miners. One such share is Neometals Ltd (ASX: NMT).

Nickel shares like Nickel Mines Ltd (ASX: NIC) have also recently been drawing attention.

And then there is rare earths company Lynas Rare Earths Ltd (ASX: LYC). Lynas is one of the only significant producers of rare earths elements like neodymium outside China. 

So all of these ASX resources shares have the potential to benefit over the medium-to-long term from the news out of the trade minister's office this week. Many have already received assistance from governments. And many more might join them in the future. Critical mineral security is certianly a hot topic right now, given the current geopolitical climate. Thus, this is a space well worth keeping an eye on.

The post The US is backing Aussie critical minerals projects, and these ASX mining shares could be set to reap the rewards appeared first on The Motley Fool Australia.

At the time of writing, the mining producer's shares are up 14.10% to a 52-week high of 89 cents. This means its shares have risen more than 30% in the past week, and almost 95% in a month.

Let's take a closer look at what the company announced before market open.

How is Cobalt Blue tracking along?

In today's statement, Cobalt Blue advised it has commenced development works at the Broken Hill Cobalt Project (BHCP).

Located in far western New South Wales, BHCP is aiming to become one of the largest producers of cobalt worldwide.

The latest underground works will provide bulk ore samples to support the operation of a large-scale demonstration plant.

Cobalt Blue noted that it has successfully established the development site Pyrite Hill, with the first blast completed.

The underground development will mine between 3,500 to 4,000 tonnes of ore to support 20 weeks of continuous operation of the Demonstration Plant.

This will see mined ore crushed, milled and treated to produce a cobalt-pyrite concentrate at the mine site.

From there, the concentrate will be trucked to the processing plant in Broken Hill for extraction and recovery of cobalt as mixed hydroxide precipitate and/or cobalt sulphate.

Cobalt Blue is targeting first ore processing (concertation) for late April.

In addition, management stated that upgrades and modifications to the 2021 Pilot Plant are well advanced.

Key major equipment items are arriving at the site and will be installed across March and April. The plant is expected to be ready to then process concentrate from the mine site in early May.

Cobalt Blue CEO, Joe Kaderavek commented on the progress:

Demonstration Plant activities are coming together nicely with mining underway and processing equipment being received.

Last year, our successful Pilot Plant opened the door to new partners. These large-scale Demonstration Plant cobalt samples are a game changer for COB, providing operating proof for project equity/debt funders and simultaneously providing high quality production scale samples for commercial partners.

About the Cobalt Blue share price

Since the start of the year, the Cobalt Blue share price has surged by close to 80% on the back of rising commodity prices.

When looking at this time last year, the company's shares have gained roughly 120% in value.

Based on valuation grounds, Cobalt Blue commands a market capitalisation of around $270.96 million.

The post 'Coming together nicely': Why the Cobalt Blue (ASX:COB) share price is surging 14% appeared first on The Motley Fool Australia.

Cobalt Blue shares rocketed an impressive 30.9% over the course of last week, rising from 55 cents per share to 72 cents. That puts Cobalt Blue up around 44% in 2022 so far.

So what has happened to give investors such a surge of optimism over the last week?

Cobalt Blue share price charges up

Well, it has to be said that it's not entirely clear. Cobalt Blue's Broken Hill Cobalt Project was granted 'major project status' recently.

This development means Cobalt Blue will receive government support for the project, which aims to produce "high quality, battery-ready cobalt sulphate". This sparked a surge of optimism for the Cobalt Blue share price at the time as it surged by more than 20% at one point. But that was made public on 2 March, more than a week ago.

But we could also be seeing a general rise in investor sentiment towards Cobalt Blue and other ASX cobalt shares. As my Fool colleague Mitchell reported on Friday, the price of raw cobalt itself has been surging of late.

The metal is a key ingredient inside many lithium-ion rechargeable batteries, itself a huge growth industry. As such, investors and suppliers alike have been keen to secure a piece of the market.

Cobalt Blue is one of the biggest cobalt plays on the ASX. But it is not the only cobalt company to have enjoyed some recent gains. Jervois Global Ltd (ASX: JRV) is another ASX cobalt share. Although Jervois didn't have quite the week that Cobalt Blue had, its shares are still up an impressive 44% or so over the past six months.

At the current Cobalt Blue share price, this ASX resources share has a market capitalisation of $213.6 million.

The post Why did the Cobalt Blue (ASX:COB) share price rocket 30% in a week? appeared first on The Motley Fool Australia.

While it may not have the same notoriety as lithium, cobalt has become a staple of lithium-ion battery chemistries. Its application helps ensure the cathodes in batteries do not overheat, extending the economical life of a typical electric vehicle (EV) battery.

Let's take a look at what is playing out in the cobalt world.

Tailwinds aplenty for commodity

Unlike some of the other commodities experiencing runaway prices, the surge in the price of cobalt has been playing out over a longer timespan.

Projections — such as those from McKinsey — suggest that one in four vehicles on the road will be electric by 2030. These expectations have fed into higher cobalt prices as manufacturers look to shore up future supply.

According to Trading Economics, the cobalt price is hovering around US$82,000 per tonne. This represents an increase of approximately 56% compared to a year ago. Such a substantial increase has also boosted ASX cobalt shares.

The commodity's price has been steadily climbing during the past year. However, it appeared to plateau just above US$70,000 per tonne between late December to mid-February.

Although, Russia's invasion of Ukraine and subsequent sanctions might be behind the latest uptick.

According to information published by the US Geological Survey, Russia was the second-largest producer of cobalt in 2021 with 7,600 tonnes.

In total, Russia's cobalt supply made up around 4.5% of the world's production. Though, this is dwarfed by the ~70% contributed by Congo.

What about cobalt shares on the ASX?

Cobalt Blue Holdings Ltd (ASX: COB) is one ASX-listed cobalt explorer that has shuffled into the spotlight recently. The company was granted "major project status" by the Federal government last week as Australia looks to play a key role in the supply of the booming commodity.

Furthermore, Cobalt Blue's Broken Hill Cobalt Project plans to produce 16,700 tonnes per year. Based on our previously referenced figures, this would slot Australia in at number two of global cobalt producers.

Another ASX cobalt share riding the price rise is Jervois Global Ltd (ASX: JRV). The billion-dollar cobalt company has enjoyed a 28% jump in its share price since the new year ticked over.

The post Why is everyone talking about ASX cobalt shares this week? appeared first on The Motley Fool Australia.

The price movements come as global commodity prices climb amid conflict between Russia, Ukraine and the rest of the world.

Against that backdrop, an Aussie cobalt developer has received government support for its project in New South Wales.

At market close, the Cobalt Blue Holdings Ltd (ASX: COB) share price was up 20.65% to 55.5 cents. In comparison, the broader ASX All Ordinaries Index (ASX: XAO) was up 0.21%.

So, what's going on with this ASX mining share?

Renewable energy project receives Government support

Cobalt Blue's Broken Hill Cobalt Project (BHCP) was awarded "Major Project Status" by the Australian government today — a move that will support the development of the project over three years.

The project aims to produce "high quality, battery ready cobalt sulphate" for renewable energy solutions.

The company says the project has the potential to be "one of the largest cobalt producers in the world" and has the attention of "more than 30 of the world's largest battery manufacturers".

Cobalt Blue said the government grant gives "formal recognition of the national economic implications of the BHCP through its contribution to growth, productivity, government revenue, industry and regional development".

Further, the company said the project was "the only large scale, ex African, Greenfield primary cobalt project globally".

Critical minerals projects such as BHCP are integral components of The Australian Critical Minerals Strategy and Australia's Long Term Emissions Plan as well as aligning with national security and interests to bolster geopolitical stability and building sovereign capability in the sector.

Project to position Australia as 'number 2 cobalt producer'

Commenting on the development, Cobalt Blue CEO Joe Kaderavek said:

Granting Major Project Status to the Broken Hill Cobalt Project will greatly assist COB to raise development capital by recognising the strategic importance given to this Project by The Australian Government.

This milestone is particularly important for overseas partners and well timed in our development journey.

COB can now boast both Made in Australia and Backed by Australia.

Cobalt Blue share price snapshot

Over the last 12 months, this ASX mining share has increased 37% in value.

It's also risen more than 12% this year to date.

The company has a current market capitalisation of around $170 million.

The post This ASX mining share rocketed 21% today. Here's why appeared first on The Motley Fool Australia.

This comes as the broader All Ordinaries Index (ASX: XAO) is struggling, currently down 0.8%.

Below we take a look at the ASX energy company's latest announcement that looks to be driving investor interest.

What did Cobalt announce?

Cobalt Blue's share price is surging after the company reported a 35% increase in its Broken Hill tenement area in New South Wales, following the grant of Exploration Licence 9254.

With Cobalt Blue securing 2 new exploration licences in 2021, its tenement portfolio now extends across some 220 square kilometres.

The company released a mineral resource estimate for its total Broken Hill tenement on 16 September. That comprised of 118 Mt at 859 ppm cobalt-equivalent (687 ppm cobalt, 7.6% sulphur and 133 ppm nickel) for 81,100 tonnes of contained cobalt.

Commenting on the company's expanding footprint in the region, Cobalt's CEO Joe Kaderavek said:

The growth in the company's tenement portfolio reflects a considered step toward securing long-term exploration potential to complement development of the Broken Hill Cobalt Project. Having now established a strong resource base we look forward to applying this blueprint in our future targeting.

Cobalt demand has been growing as the world works to transition away from fossil fuels and towards renewables. Cobalt is found in many new batteries, including lithium-ion batteries, used in electric vehicles (EVs) and for grid storage for renewable sources, like wind and solar.

Cobalt Blue share price snapshot

Over the past 12 months, the Cobalt Blue share price is up a stellar 255%. By comparison the All Ords has gained 19% over the full past year.

Cobalt Blue's shares are down 1.5% over the past month despite today's lift.

The post Here's why the Cobalt Blue (ASX:COB) share price is surging 11% today appeared first on The Motley Fool Australia.

The charge, which could cost the average owner $330 per year, is set to become law from 1 July. That is conditional on the government's bill passing the state parliament.

The proposal stands in stark contrast to most other jurisdictions globally. Many nations, states, and localities provide tax incentives and rebates to encourage drivers to buy low or zero-emission vehicles.

ASX lithium miners, such as Lake Resources NL (ASX: LKE), Hawkstone Mining Ltd (ASX: HWK), and Piedmont Lithium Ltd (ASX: PLL) all have boomed recently on the back of ever-growing demand for lithium dependent electric vehicles.

Similarly, cobalt is an essential metal in the manufacturing of lithium-ion batteries. Miners like Cobalt Blue Holdings Ltd (ASX: COB) would be affected by any policy that impacted demand for electric vehicles.

So, the question is, will other governments follow suit? If so, what does that mean for ASX lithium shares and related industries? Let's take a closer examination.

Why is the Victorian government taxing electric vehicles?

The charge, which will see owners pay 2.5 cents per kilometre travelled in zero-emission vehicles and 2 cents on hybrid cars, is being justified as a way for all drivers to pay for roads.

"Everybody who uses a road should pay their fair share to maintain them," said Victorian Treasurer Tim Pallas.

As electric vehicles use no fuel and hybrid vehicles use a minimal amount, owners avoid paying fuel excise taxes that fund road infrastructure.

Zero-emission automobiles make up less than 1% of all Australian cars – well below nations in Europe, where the figure is approximately 4.7%. Federal government modelling expects the figure to increase from 5% – 25%.

Mr Pallas agrees. "We'll get to a point where essentially there'll be no revenue capacity for the state to manage the use and maintenance of our roads," he said.

Will others follow Victoria's lead?

In Australia, maybe. The South Australian government beat Victoria in introducing legislation to tax electric vehicles but shelved the plans to see what impact it would have in its neighbouring state.

According to The New Daily, the ACT, Tasmania, and Western Australia do not intend to introduce such a tax. However, New South Wales and Queensland have left the possibility open.

A discussion paper on electric vehicles released by the Federal Government in February examines the proposed Victorian tax and does not discredit it or rule it out on a federal level.

The paper, entitled Future Fuels Strategy, discusses strategies to increase uptake, including:

• investing in charging for infrastructure;
• trialling electric vehicles within the Commonwealth fleet, and;
• managing increased demand on the electricity grid.

The government, however, is not considering any form of increased fuel standards or financial benefits.

What is the general stance at a global level?

Australia is just a small player in total global car sales. Nations worldwide and the private sector are using their resources to encourage more electric vehicle sales, not fewer.

In the United States, for example, the government provides a tax credit of up to US$7,500 for each purchase of an electric vehicle. The European Union is targeting 30 million electric vehicles on its roads by 2030.

China requires 12% of all vehicles manufactured in or imported to the country to be electric.

Even General Motors Company (NYSE: GM) plans to stop selling cars with combustible engines by 2035.

While it's impossible to predict, all indicators (even in Australia) point to electric car sales continuing to increase. Of course, more electric vehicles equal more demand for lithium, cobalt, and other metals required in battery manufacture.

ASX lithium and cobalt stock price snapshots

At the time of writing, the Lake Resources share price is trading 2.82% lower at 35 cents per share. In contrast, the Hawkstone share has lifted 2.78% to 3.7 cents, and Piedmont shares are selling at $1.04, up 1.96%. 

Over the course of 1 year, the share prices of each of these companies have increased between 173% and 338%.

The Cobalt Blue share price is currently up 1.23%, trading at 41 cents. Its share price has increased by 310% since this time last year.

The post Victoria to tax electric vehicles? What this could mean for ASX lithium shares appeared first on The Motley Fool Australia.

What Cobalt Blue does

Cobalt Blue is primarily involved in exploration, however, it also undertakes project development. On this front, the company is working towards its Broken Hill project in New South Wales.

It sees itself as a green company thanks to its interest in cobalt generation. It is a strategic metal with strong demand used in batteries, gaining traction as the demand for electric vehicles rises. However, as outlined by the company its "ambitious goals are subject to funding availability".

The small cap currently boasts a market capitalisation of $104 million.

What Happened

Today, Cobalt Blue announced that its pilot plant commissioning plant is well underway. With the first cobalt samples expected shortly.

Following the first samples there will be an independent assay, and then shipments starting in late March.

Moreover, the company outlined that is has secured over 30 partners from around the world. These partners include the company's from Europe, India, the US, China, and Australia. Notably, there is one partner that is requesting a particularly large sample so that they are able to test if the product is worthy of being an approved supplier. However, these qualifications will take at the very least 12 months to be verified.

Management Comments

Speaking about the program Cobalt Blue's CEO Joe Kaderavek, said:

With commissioning underway then kicking off our expanded global Cobalt Sample Program later this month, Cobalt Blue is making tremendous strides towards technical and commercial milestones.

About the Cobalt Blue share price

The post Why the Cobalt Blue (ASX:COB) share price is rocketing 6% today appeared first on The Motley Fool Australia.

Investor interest appears to have turned to Cobalt Blue following an update on the company's Broken Hill Cobalt Project in New South Wales.

What progress did Cobalt Blue report at Broken Hill?

In this morning's ASX release, Cobalt Blue revealed that its wholly-owned subsidiary, Broken Hill Cobalt Project Pty Ltd, had received notice of its proposed grant of exploration licence application.

The tenement application covers some 67sq km and will increase Cobalt Blue's exploration area in the Broken Hill region by approximately 70%.

The company said its advanced exploration targeting bolsters the long-term exploration opportunities at Broken Hill.

Commenting on the project, Cobalt Blue CEO Joe Kaderavek said:

We are continuing to assess opportunities for further acquisition across the Curnamona Province. With the current mineral resource inventory supporting a 17-year operation, further consolidation in the region will secure long-term exploration potential.

The company said it will prioritise the continued consolidation of ground within the Broken Hill region. This consolidation supports its long-term exploration strategy.

So far the company has identified numerous exploration targets, which it reports could enable it to sustain the mineral resource growth it's achieved since 2016. Several targets identified by the 2017 VTEM-Max survey have not been tested yet. Two of these areas remain a high priority for further exploration: Pyrite Hill South and Railway South.

Cobalt Blue share price and company snapshot…

Cobalt Blue Holdings is a mineral exploration and project development company with a focus on cobalt. The company predicts it will see strong demand for cobalt – used in lithium-ion batteries – as the world transitions away from fossil fuels.

The company first traded on the ASX in February 2017 and now has a $79 million market capitalisation.

With today's intraday gains taken into account, the Cobalt Blue share price is up 56.5% in 2021. By comparison, the All Ordinaries Index (ASX: XAO) is up 3.2% this calendar year.

Over the past 12 months, Cobalt Blue shares are up 177%. And investors who bought at the 24 March lows are sitting on a share price gain of 350%.

The post The Cobalt Blue (ASX:COB) share price is rocketing 13% today. Here's why appeared first on The Motley Fool Australia.